Blog - Tobacco Reporter

22nd Century Sells Cannabis Operations

22nd Century Group will sell most of its GVB Biopharma hemp/cannabis operations to Specialty Acquisition Corp., an entity affiliated with GVB employees.

Terms of the transaction include a cash payment to the company of $1 million at closing of the sale and a 12 percent secured promissory note for $1.25 million issued by the buyer. The company plans to use the proceeds from the sale to further deleverage its balance sheet.

22nd Century is also entitled to retain any insurance proceeds received in connection with the fire at the company’s Grass Valley manufacturing facility, a portion of which will be used to offset the buyer’s portion of the shared liabilities.

The sale is expected to close in early December 2023, subject to customary closing conditions, including approval by 22nd Century’s board of directors.

“The sale of our hemp/cannabis franchise will immediately and materially further reduce the cash and operating demands within our business,” said John Miller, interim CEO of 22nd Century, in a statement.

“We expect this transaction will substantially lower 22nd Century’s operating expenses beyond the previously announced $15 million in cost savings initiatives on an annual basis. Additionally, we will retain rights to the insurance proceeds, subject to certain offsets, effectively recouping cash that was invested into the continuity of the hemp/cannabis business.

November 28, 2023

Economist Conference Explores Illicit Trade

Economist Impact will host the eighth Global Anti-Illicit Trade Summit, supported by Japan Tobacco International, on Nov. 30 the Westin Ottawa.

When it comes to cross-border movement of illegal goods, North America’s expansiveness exacerbates the problem. The United States shares the world’s longest (8,890 km) land border with Canada and the busiest land-border crossing with Mexico. This makes preventing smuggling and illegal migration especially challenging for border security and customs agencies. With just over 12,000 km in land borders and approximately 230,000 km of coastline, North America offers plenty of opportunities for criminal networks to traffic people and illegal goods and improve their position in the illicit market.

The International Chamber of Commerce estimates the financial cost of illicit trade to be $4.2 trillion annually.

Speakers at the Economist Impact forum include General John Kelly, former commander, United States Southern Command; David Luna, executive director, International Coalition Against Illicit Economies; Christopher Taylor, Canada country attaché, Bureau of Alcohol, Tobacco Firearms and Explosives; Laura Dawson, executive director, Future Borders Coalition; Anne Kothawala, chief executive, Convenience Industry Council of Canada; Marissa Molé Bostick, deputy director, Counterfeit Crimes Unit, Amazon; Sergio Miranda, sergent spécialiste en économie souterraine, Sûreté du Québec; Gaston Schulmeister, director of the Department against Transnational Organized Crime (DTOC), Organization of American States; José Antonio Abugaber Andonie, President, Concamin; and Abram Benedict, Grand Chief, Mohawk Council of Akwesasne

For further details about the summit, please visit anti-illicit-trade.economist.com.

November 28, 2023

CoEHAR Scientists Among the Most Cited

The 2023 update of the ranking compiled by Plos Biology and Elsevier, conducted by researchers from Stanford University, honors 20 scientists of the Center of Excellence for the acceleration of Harm Reduction (CoEHAR) at the University of Catania among the most cited scientists globally.

The latest update of the database “Updated science-wide author databases of standardized citation indicators” was released in October 2023.

The annually updated database recognizes excellence in the field of scientific research, selected from a sample of 100,000 researchers and divided into 22 different scientific areas and 176 additional sub-fields.

CoEHAR founder Riccardo Polosa remains one of the most cited scientists in his field, recognized for the quality of contributions in the field of research applied to smoking harm reduction.

However, this year, in addition to Polosa, 19 additional CoEHAR researchers are honored for their work and included in the database, the organization announced on its website.

They are: Sebastiano Battiato, Antonino Belfiore, Aldo Calogero, Filippo Caraci, Rosita A. Condorelli, Filippo Drago, Margherita Ferrante, Antonio Gagliano, Fabio Galvano, Giuseppe Grasso, Antonino Gulino, Gaetano Isola, Rosalia Maria Leonardi, Sandro La Vignera, Giovanni Li Volti, Venerando Rapisarda, Martino Ruggieri.

Among the recognized CoEHAR scientists, there are also Council members from different universities: Emmanuele Jannini from the University of Rome Tor Vergata and Maria Luisa Brandi from the University of Florence

The Plos Biology database uses six citation parameters, including the total number of publications and the number of times an article related to a scientific study in which the scientist in question is a single or first author is cited.

November 28, 2023

U.K. Still Committed to Generational Ban

England remains committed to its generational tobacco ban despite New Zealand decision to ax a similar plan, reports the Central Fife Times.

Britain’s government has proposed legislation that would make it illegal for anyone born on or after Jan. 1, 2009, to ever legally buy cigarettes, effectively raising the legal age of purchase by one year, every year.

The legislation was inspired by a generational tobacco ban passed by New Zealand’s former government.

Following New Zealand’s recent general elections, however, the new coalition announced it would repeal the legislation, arguing that there are better ways to improve public health.

Smokers’ rights activists urged England to follow suit by ditching its version of the generational tobacco ban.

“Having stolen the idea from the previous New Zealand government, the prime minister should follow the example of the next New Zealand government and scrap this crazy plan,” said Forest director Simon Clark.

Asked whether Rishi Sunak would consider following Wellington’s lead, a spokeswoman for the British prime minister said: “No, our position remains unchanged. This is an important long-term decision and step to deliver a smoke-free generation which remains critically important.”

A government-commissioned report published in June 2022 put the annual cost to society of smoking at about £17 billion ($21.51 billion).

November 28, 2023

New COP and MOP Dates Announced

The World Health Organization has announced the dates for the resumed in-person sessions of the 10th session of the Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC) and the third session of the Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products.

Following communication received from Panama, the host country of COP10 and MOP3, and in consultation with the Bureaus of the Conference of the Parties to the FCTC and of the Meeting of the Parties to the Protocol, the dates for the resumed in-person sessions of COP10 and MOP3 have now been set as follows:

Resumed COP10: Feb. 5-10, 2024
Resumed MOP3: Feb 12-15, 2024

November 28, 2023

Australia to Ban Imports of Disposables in 2024

Australia will ban imports of single-use e-cigarettes in January and all non-therapeutic vapes, including refillable devices, in March, reports Reuters. Importers of vapes for medical purposes will need a permit from the Office of Drug Control, according to Health Minister Mark Butler.

Additional legislation next year will apply the same restrictions to domestic manufacturers.

“These are the vapes that have pink unicorns on them, bubblegum flavoring, disguised in order for them to hide them in their pencil cases,” Butler was quoted as saying.

“This is not a therapeutic good to help hardened smokers kick the habit. This is a good that is deliberately targeted at kids to recruit them to nicotine addiction.”

Around one if five Australians aged 18 to 24 vape, according to government data.

To ensure continued access to vapes for smokers looking to quit, Doctors will be given expanded powers in January to prescribe therapeutic vapes when clinically appropriate.

November 28, 2023

Foundation Cuts Tobacco Ties

The Foundation for a Smoke-Free World (FSFW) will stop accepted funding from the nicotine industry, reports Reuters.

Set up in 2017 with support from Philip Morris International, which pledged to provide tens of millions of dollars every year for 12 years to keep it running, the organization has struggled to gain credibility with tobacco control advocates.

The foundation will now rebrand and find new funders from outside of the industry, said Clifford Douglas, who took the foundation’s helm in October.

A tobacco control advocate veteran, Douglas said he wants to see the foundation reestablished as a credible actor in ending smoking.

“Any skepticism around our independence can be laid to rest,” he said.

Tobacco control groups expressed reservations, however.

“Whether it’s true or not, [Douglas] will be seen as pursuing PMI’s agenda, not that of public health,” said Deborah Arnott, CEO of Action on Smoking and Health in the U.K. The foundation’s role, she said, was “irredeemably tainted” by its PMI funding.

Yolonda Richardson, president and CEO of the Campaign for Tobacco Free Kids, said it was “ludicrous” for the foundation to claim independence after accepting a hefty payment from PMI.

PMI said the split was mutual, and wished the foundation success.

November 28, 2023

‘Systemic Failures’ Blamed for COP Delay

The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) blames “systemic failures” at the World Health Organization Framework Convention on Tobacco Control (FCTC) for the postponement of the 10th Conference of the Parties (COP10) that was due to take place last week in Panama.

“While the ‘official’ reason for the postponement of the conference was said to be security issues on the ground in Panama, it has come to light that the unfulfilled COP10 organization contract for which $5 million was allocated by the Panamanian Ministry of Health was terminated by the government at the end of October, finding itself without any service provider to ensure the event took place,” CAPHRA wrote in an e-mailed statement.

“The fact that the WHO FCTC knew in October that they did not have a venue or conference planning underway and waited until the week before the conference was due to begin before cancelling it shows contempt for member states and a blatant disregard and dismissal of the months spent creating and submitting position papers, requesting budget allocations from their governments and planning their attendance—including airfares, visas and hotel reservations,” the tobacco harm reduction group wrote.

“But then again, it seems a nonissue that $5 million disappeared, said the CAPHRA. Money that doctors in Panama said would be better spent on actual healthcare in the country—incubators, medicines and facilities.”

According to CAPHRA, the WHO FCTC’s actions not only threaten public health but also cause economic strain and foster next-generation addiction.

“The WHO FCTC is tone deaf to anything or anyone that questions the work they are mandated to do,” said CAPHRA Executive Coordinator Nancy Loucas. “This includes sabotaging health policies, negatively impacting the environment and using funds from Big Pharma and the Bloomberg Foundation, among others, to promote misleading narratives and undermine tobacco harm reduction efforts.”

November 27, 2023

PMI Names U.S. Communications Officer

Philip Morris International has appointed Travis Parman as vice president and chief communications officer of the U.S.

“We are thrilled that Travis is joining us in our bold ambition to deliver a smoke-free future in the United States. We’re on a mission to replace cigarettes—the most harmful form of nicotine consumption—as soon as possible with science-based smoke-free alternatives that are a better choice than continued cigarette use,” said Stacey Kennedy, president of the Americas region and CEO of PMI’s U.S. business, in a statement. “With his passion for positive change and deep communications experience in the U.S. and internationally, Travis will be a valuable addition to our leadership team.”

Parman joins PMI from AppHarvest, a tech-driven sustainable food company based in Kentucky, where he served as chief communications officer since 2020. He previously held multiple roles with the Renault-Nissan-Mitsubishi Alliance in Paris; Nashville; and Yokohama, Japan—most recently as vice president of international communications and global engagement.

Prior to his work with the alliance, he held public relations and communications leadership roles at General Motors, Ally Financial and PulteGroup. Parman holds a master’s degree in communications management from the Newhouse School of Public Communications at Syracuse University and a bachelor’s degree in communications from the University of Tennessee.

“Joining PMI at such a pivotal moment in the company’s journey toward a smoke-free future provides the perfect opportunity to drive meaningful change, which has been a hallmark throughout my career as a communicator,” said Parman.

November 27, 2023

BAT Urges Stricter Vape Rules

BAT is urging the U.K. to introduce new regulations that the company believes will help the country achieve its “smoke-free” ambitions.

England wants to reduce smoking prevalence to 5 percent of less by 2030, with Wales targeting a similar timeline and Scotland four years later.

Ahead of the consultation on the Tobacco and Vapes Bill that ends Dec. 6, BAT is now publishing proposals that seek to minimize the underage appeal of, and access to, vapor products, along with the environmental impact of single-use e-cigarettes.

In addition to a ban on dessert and soft drink flavors for vapes, the company is calling for an end to marketing slogans and imagery involving toys, cartoons and sweets.

“Vaping is the key to unlocking the U.K.’s smokefree target,” said Asli Ertonguc, BAT lead for the U.K., in a statement. “As the largest manufacturer of vaping products in the U.K., we are clear on our responsibilities and are urging the government to introduce more stringent vaping regulations. We believe that underage users should never vape, so we want confectionery, dessert and soft drink flavors to be banned and the introduction of a new regime for how and where vapes are sold.”

In practice, this would mean requiring vape sellers to have a retail license, similar to that in place with alcohol and cigarettes, and which would be revoked if they were found to be selling to anyone underage, according to BAT. Retailers would also have to demonstrate to Trading Standards that they observe either Challenge 25 protocols or new technologies at point-of-sale locations which verify age, such as facial recognition cameras.

In addition to tackling underage vaping, BAT also wants vapes to be made more environmentally responsible. BAT wants it to be mandatory for single use vapes to have removable batteries, to make recycling more straightforward.

Five million single use vapes are thrown away each week in the U.K. according to 2023 research from recycling campaign group Material Focus—a fourfold increase since 2022. But only 17 percent of vapers recycle in the correct recycling bins, according to the same data.

Finally, according to BAT, products shipped to the U.K. should be subject to a mandatory testing program to ensure products are compliant with U.K. regulations before they can be sold.

“We recognize that some want single use vapes banned altogether, but we are concerned such a move would lead to unregulated sales, and less options for adult smokers looking to switch,” said Ertonguc. “Governments should wield their enforcement powers to help re-build confidence in vaping by ensuring adult consumers can buy legitimate products, and suitably penalizing those who fail to comply.”

November 27, 2023